Santa Monica Hotel Sold For Nearly $103 Million
The Sheraton Delfina Santa Monica Hotel in Santa Monica, California has new owners. The LA Times reports that the luxury 310-room hotel has been bought for $102.8 million by Pebblebrook Hotel Trust, a Maryland real estate investment trust from Regis Properties, and investment group headed by hotelier Brad Korzen. Korzen's Viceroy Hotel Group will continue to manage the hotel. Other Pebblebrook hotels include the Sir Francis Drake Hotel in San Francisco, the InterContinental Buckhead in Atlanta, the Hotel Monaco in Washington DC. Back in October we mentioned that the Pebblebrook Hotel Trust had picked up the Grand Hotel in Minneapolis for $33 million.
The REIT will spend $9 million to refurbish the guest rooms and common areas. The hotel began as a 10-story inn back in 1972 and was expanded in 1984, it has an $11 million renovation in 2005. Its location and reputation made this one an easy sell. In 2009, the Delfina was more than 80% occupied in 2009 with an average daily rate of $179.